Commodities

Energy commodities include a number of different oil and gas products, such as natural gas and various grades of crude oil. These resources are critical to every day life, and are among the most visible commodities to many consumers. They are also among the most widely-traded commodities.

Symbol

Name

Last Trade Price

Change (%)

Energy commodities have appeal from an investment perspective because they are used so widely in an number of industrial applications, and can see significant price appreciations in relatively short periods of time. Energy commodities can also serve as a hedge against personal consumer expenditures, since rising oil prices translate into higher prices of gasoline and various goods that require long distance transport. That makes energy commodities a nice hedge against inflation as well, as increases in oil and gas prices tend to ripple across the economy. There are a number of ways to invest in both baskets of energy commodities and specific resources, including liquid options and futures contracts, ETFs and ETNs, and stocks of companies in the energy sector.

Energy Types

Brent Oil

Coal

Electricity

Ethanol

Gasoline

Heating Oil

Natural Gas

WTI

CS Capital Markets offers gold, silver, and copper CFDs.

Gold

Though often used for speculation in the world financial markets gold is technically a currency. We quote the price of gold versus the USD dollar.

Traders often use gold for speculation when there is uncertainty in the financial markets. It can be used to diversify your portfolio or as a hedge to manage risk. Gold has been valued by the human race for millennia, however before the invention of CFDs its precious nature meant it was an expensive asset to trade.

CS Capital Markets offers gold CFDs which allows our clients to trade the price of gold on margin, without actually needing to purchase it in physical form.

You can trade gold online starting from 0.1 lots

Silver

Traders also use silver to speculate on the financial markets, but it is also used in the electrical industry.

Like gold it is sometimes correlated with the currencies and equities markets it can also be used to diversify your portfolio or as a hedge to manage risk.

We quote the price of silver against the US dollar.

CS Capital Markets offers silver CFDs which allows our clients to trade the price of silver on margin, without actually needing to purchase it in physical form.

You can trade silver online starting from 0.1 lots

Copper

Copper is traded for use across multiple industries such as construction and technology. Like gold and silver we quote it against the US Dollar.

Analysts often use the price of copper as an indicator used to measure growth in the world’s emerging markets as it has high demand in countries with developing economies.

CS Capital Markets offers copper CFDs which allow our clients to trade the price of copper on margin without actually needing to purchase it in physical form.

You can trade copper online starting from 0.1 lots

Symbol

Name

Last Trade Price

Change (%)

We will use gold, GOLD, as an example of how to trade commodities.First determine the standard lot size for GOLD.The standard lot size for GOLD is $1 per 0.1.

If you do not know the standard lot size you can look it up on our Market Information Sheets

The price of GOLD is measured in movements of 0.1. Since a tick is a unit used to measure the smallest possible price movement a product can make and since 0.1 is the smallest amount GOLD can move up or down we will refer to a movement of 0.1 in this example as a tick.

With CS Capital Markets you can trade from 0.10 lots which represent the minimum lot size.This is 0.10 lots x $1 per tick, which is $0.10 or 10 cents per tick.

If you bought GOLD with a lot size of $0.10 you would have made $0.10 for every tick the price of GOLD went up.

If you sold GOLD with a lot size of $0.10 you would have made $0.10 for every tick the price of GOLD went down.

If you bought GOLD at $1200.0 and the price moved up 5 ticks to $1200.5 you would have made a profit of 50 pence because $0.10 per tick x 5 ticks = $0.50, or 50 cents.

If you sold GOLD at $1200.0 and the price moved down 50 ticks to $1150 you would have made a profit of $5 because $0.10 per tick x 50 ticks = $5.

Alternatively if the prices in the examples moved in the opposite directions you would have lost the amounts shown above.

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General Risk Warning: CFDs are leveraged products. Trading in CFDs carries a high level of risk thus may not be appropriate for all investors. The investment value can both increase and decrease and the investors may lose all their invested capital. Under no circumstances shall the Company have any liability to any person or entity for any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to CFDs.